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PR 36 05


BONNEVILLE POWER ADMINISTRATION
FOR IMMEDIATE RELEASE:
THURSDAY, March 24, 2005
Contact: Ed Mosey | , BPA (503)-230-5131

   

Dry weather prompts calls for wise use of energy


Saving energy will help reduce future rate increases



PORTLAND, Ore. - The Bonneville Power Administration, regional utilities and public interest groups today asked Northwest residents to help combat the economic effects of a dry winter by efficiently using electricity this spring and summer.

Another winter of low precipitation makes six in a row -- the lowest cumulative runoff on record, meteorologists report. At a press conference today, representatives of Clark Public Utilities, Northwest Power and Conservation Council, Northwest Requirements Utilities, PacifiCorp, Portland General Electric, the Public Power Council, Puget Sound Energy, several public interest groups and BPA called on Northwest consumers to be especially careful in their use of electricity this year.

Barring unscheduled plant outages or other unforeseen circumstances, the region's utilities expect to have enough electrical generating capability to meet demand. The primary effects will be financial. Low precipitation is reducing hydro system performance for utilities and suppliers in the region, which increases power purchases from other, more costly sources. Low water in rivers is also shrinking expected surplus sales revenues. All of this puts upward pressure on rates.

BPA Administrator Steve Wright said: "Last year we reduced rates 7.5 percent but notified the region that the biggest variable affecting rates going forward would be water and markets. The weather is not cooperating. We can't do anything about the weather, but we can do something about how much energy we use."

All Northwest utilities rely on hydropower for some portion of their electrical supply. When water conditions are average or better, BPA and the other utilities sell excess energy in surplus markets and use the revenue to help hold down rates for Pacific Northwest customers. To the extent that sales are down due to low water, revenues are falling short of projections.

Utilities also must turn to the wholesale market in some months to purchase needed power, and prices there are up. Although the addition of gas-fired turbine generators in the region since the drought of 2001 has helped beef up supply, reliance on gas-fueled combustion turbines at a time when natural gas prices are extremely high increases costs.

"Conservation makes sense during all water conditions," said Melinda Eden, chair of the Northwest Power and Conservation Council. "During a drought it becomes even more important. Conservation is the most important way to meet future electricity demand in the Northwest and can help reduce the future cost of electricity for all consumers. It also offers environmental benefits - there are no toxic emissions. And by reducing demand from the hydropower system, we save water that can help salmon and steelhead migrate rivers."

Here are some steps that the public can take to help save energy and dollars this spring and summer.
  • Turn off computers, appliances and lighting when not in use.
  • Insist on Energy Star models when buying electrical products.
  • Install compact fluorescent lights.
Joining Wright of BPA were: Bob Jenks, executive director, Citizens' Utility Board of Oregon; Carol Curtis, commissioner, Clark Public Utilities; Margie Harris, executive director, Energy Trust of Oregon; Patrice Thramer, director of marketing, Northwest Energy Efficiency Alliance; Melinda Eden, chair, Northwest Power and Conservation Council; Geoff Carr, Northwest Requirements Utilities; Kevin Lynch, vice president, PacifiCorp; Jim Piro, chief financial officer, Portland General Electric; and Jerry Leone, executive director, the Public Power Council.

For information on ways you can save energy, contact your local utility or see links below:


Northwest Governors Call for Wise Use of Electricity
in Response to Low Water in Northwest Rivers

Statement of Gov. Brian Schweitzer of Montana:
"When power supplies are short and market prices high, the best ways to hold down rates and individual power bills are to conserve energy, and pray for rain"

Statement of Gov. Christine Gregoire of Washington:
"I support the Bonneville Power Administration and the utilities in their efforts to save energy and water. Conservation is always a good idea, especially when we are facing a drought."

Statement of Gov. Ted Kulongoski of Oregon:
"We must each do our part to help prevent Oregon's water shortages from escalating to water emergencies, and energy conservation is a strategy that we can - and should - all adopt to help meet the needs of Oregon's communities this summer. Not only do consumers win with reduced energy costs - but we save critical water for our fish and agricultural needs."

Statement of Gov. Dirk Kempthorne of Idaho:
"We in the Pacific Northwest have been blessed with resources that have provided us with abundant, inexpensive energy. As this six year drought continues, we must do everything we can to protect and conserve those resources. Please be mindful of your energy use and conserve when possible."



Submitted for distribution on 03-24-2005 at 9:49 AM



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